Cabinet approval on 7th CPC House Rent Allowance
7th CPC House Rent Allowance
House Rent Allowance
HRA is currently paid @ 30% for X (population of 50 lakh & above),
20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of
cities. 7th CPC has recommended reduction in the existing rates to 24%
for X, 16% for Y and 8% for Z category of cities.
As the HRA at the reduced rates may not be sufficient for employees
falling in lower pay bracket, it has been decided that HRA shall not be
less than ₹5400, ₹3600 and ₹1800 for X, Y and Z category of cities
respectively. This floor rate has been calculated @ 30%, 20% and 10% of
the minimum pay of ₹18000. This will benefit more than 7.5 lakh
employees belonging to Levels 1 to 3.
7th CPC had also recommended that HRA rates will be revised upwards in
two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and
10% when DA crosses 100%. Keeping in view the current inflation trends,
the Government has decided that these rates will be revised upwards when
DA crosses 25% and 50% respectively. This will benefit all employees
who do not reside in government accommodation and get HRA.
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